Americas

On 20th April 2005, Colonel Lucio Gutiérrez became Ecuador’s third
president since 1996 to be forced out of power by mass protests and
strikes. He has since been replaced by the former vice-President,
Alfredo Palacio. The dramatic events which drove out Gutiérrez were the
latest wave of mass insurrectionary protests which have crashed down on
Ecuador. The desperate economic and social conditions of the mass of
those exploited by capitalism in Ecuador has driven them time and again
to take to the path of struggle and mass uprisings to try and find a
solution to their plight.

While Ecuador’s rich elite - 20% of the population consumes more than
60% of Gross domestic Product - live an opulent life style, the poorest
25% are left destitute trying to get by day by day with a mere 4% of the
GDP. Unemployment or under-employment affects 46% of the population, 60%
live below the official poverty and an incredible 45% have no access to
running water.

Gutiérrez won Presidential elections in 2002 with 55.5% of the vote. By
the time he was forced out of office he had the support of only 7% of
the 13 million strong population. He was elected on a radical
nationalist populist programme with many similar characteristics to that
of Hugo Chávez in Venezuela. Gutiérrez first came to national prominence
during the national uprising in January 2000 led by the indigenous
peoples which make up an estimated 45% of the population. During this
mass uprising, which overthrew government of President Jamil Mahuad,
Gutiérrez gained popularity as an army Colonel, for refusing to open
fire on the mass demonstrations in Quito, the capital city.

He then left the army and formed the ’January 21st Patriotic Society’ in
preparation to stand in the 2002 elections. However, unlike Chávez, who
has moved in a more radical direction, Gutiérrez, rapidly moved
completely to the right and capitulated to the neo-liberal policies
demanded by the IMF and US imperialism.

This rapid evolution to the right following Gutiérrez’s election was a
well trodden path followed by Ecuador’s governments since the mid
1990’s. Throughout this decade the application of neo-liberal policies
devastated the country. By the end of the 1990’s Ecuador was officially
declared bankrupt with 70% unemployment and 46% ’living’ or surviving –
just - on less than US$1 per day. Abdala Bucaram, - or ’El loco’ as he
is known in Ecuador - came to power on a radical nationalist populist
wave in 1996 Presidential elections reflecting mass opposition to the
neo-liberal policies.

Capitulation to the IMF

Within days he capitulated to the demands of the IMF. Overnight he
raised electricity prices by 500% and gas by 340%! Awash with corruption
and sleaze, ’El loco’ was driven from power and into exile in Panama by
a mass general strike and uprising following failed attempts to repress
the movement in 1997 after only a few months in office. His successor,
Jamil Mahaud, immediately took the measures demanded by US imperialism
to deal with the economic crisis.

Ecuador has some strategic importance for US imperialism as a base for
its military operations in South America. Mahuad agreed a ten year
authorisation for the US to use the air force base at Manta and the port
naval base at Jaramijo for monitoring and tracking drugs cartel and in
reality guerrilla activity in Colombia.

Mahuad also began to prepare for the dollarisation of the economy which
was finally introduced in March 2000. It was in response to continued
attacks on living standards and introduction of neo-liberal policies
that a social volcano erupted in January 2000.

This massive movement went further in challenging the ruling class than
the recent wave of struggle has done. It began as an uprising of the
indigenous peoples but was rapidly joined by the working class in the
cities. The trade union federations - CSLdeE and FUT - were forced to
support the movement and call a strike. The masses stormed the congress.
The army split and significant section refused to fire on the
demonstrators and joined the uprising. An estimated 400 junior army
officers went over to the side of the working class, indigenous peoples
and urban poor.

The ruling class and its state apparatus were effectively left suspended
in mid air and were powerless to act. The indigenous peoples established
a Parlamento Popular at national regional and city level. The first
declaration of the Parlamento Popular was that "it no longer recognises
the three powers of the state" (Executive, Judiciary and the
legislature).

“Dual power”

As the CWI pointed out at the time, important elements of what Marxists
call “dual power” existed. What is meant by this is that the ruling
class and its institutions are challenged for power by a mass movement
of the poor and oppressed and cannot rule society. At the same time the
masses have not fully taken over the running of society and taken the
necessary measures to replace the capitalist state apparatus. (See
’Ecuador -the struggle continues’ April 2000 on the CWI web page).

While clearly attempting to rid themselves of the capitalist rulers, the
masses at that stage had not embraced the idea of socialism as an
alternative to capitalism or taken the necessary measures to firmly take
power into their own hands. This, together with the absence of mass
workers’ party (which with a revolutionary socialist programme which
could channel the determination of the masses into a conscious movement
and adopt the right tactics and initiatives) meant that power was
eventually passed back to the ruling class and its representatives.

Gutiérrez played an important role in this process. It was an
anticipation of his role in implementing pro-capitalist policies when he
was elected President in 2002. The Parlamento Popular, in 2000,
appointed a ’triumvirate’ of a Junta de Salvación Nacional which
initially included Gutiérrez. As the ruling class and its
representatives felt power slipping away from them, a section broke from
the old regime in order to try and control the movement. The Chief of
Staff of the Armed forces, General Carlos Mendoza, deserted the
government and joined the new government. Gutiérrez resigned to make way
for him!

The Junta briefly became a ’popular front’ government, that is to say a
coalition government including representatives of the capitalist class
who act as a break of the revolution with the objective of derailing it.

Marx pointed out that history repeats itself first time as tragedy and
second time as farce. Mendoza used his membership of the Junta as a
platform to announce his resignation from the Junta and appoint Gustavo
Noboa, the former vice- President as President. It was exactly the same
in 1997 when Bucaram was overthrown and the then vice-President Fabián
Alacón took over. In 2005 it was Gutiérrez’s turn to be forced out to be
replaced by his vice- President, Palacio, who has now taken the poisoned
chalice.

Gutiérrez was elected as a radical populist army officer in 2002. His
lack of a revolutionary socialist programme or perspective to spread the
idea of a socialist revolution throughout the region meant he was
imprisoned within capitalism. Ecuadorean capitalism meant a devastated
of economy increasingly in the grip of the stranglehold of imperialism.
The government he headed had no room to manoeuvre whilst remaining
within capitalism. Gutiérrez almost immediately capitulated to the
demands of capitalism and imperialism and introduced a vicious
neo-liberal programme.

Although Ecuador is the fifth largest oil producer in Latin America, it
did not have the same benefits from these reserves as Hugo Chávez enjoys
today (Chávez has been able to use oil revenues to carry out an
important reform programme that has given his regime a period of
stability).World oil prices were lower in 2002 than they are today. In
Ecuador 70% of the oil stabilisation fund in Ecuador was used to pay
crippling national debts.

In 2003 Gutiérrez reached agreement with the IMF on an "adjustment
programme". This included a wage freeze until 2007, 120 000 redundancies
and the abolition of the right to strike in the public sector,
privatisation of electricity, oil, water and telecommunications and a
gas price increase of 375%!

The capitalist class in Ecuador, like their counter parts in the whole
of the neo-colonial world cannot play a progressive role in the modern
era or sustain capitalist development. Tied to imperialist interests in
the last analysis they will always act to defend their own interests
against those of the working class, poor peasants and others exploited
by capitalism and landlordism.

In the modern era it is only possible for the working class, with the
support of the poor peasants and other classes exploited by capitalism
to take over the running of society and to begin to plan the development
of society, by breaking with capitalism with the perspective of
spreading the socialist revolution internationally.

The experience of the working class has demonstrated time and again that
there is not a progressive wing of the ruling class that the working
people can rely on to struggle against capitalism and imperialism.

Some on the ’left’, especially from the Communist Parties, argue that a
patriotic, progressive wing of the capitalist exist and that it is
necessary to pass through a phase of developing capitalism in these
countries on a democratic basis. Only after this has been done, they
claim, is it possible to begin to pose the question of the need for a
socialist revolution. History has repeatedly demonstrated that
capitalism and landlordism cannot develop these societies on a
sustainable basis.

The idea of looking towards a ’progressive patriotic’ wing of the ruling
class was the basis of the incorrect ideas propagated by the Movimiento
Popular Democratico (MDP) which is the electoral block of the Partido
Communista Marxista-Leninista de Ecuador.

With 5% of the vote, this party was decisive in giving Gutiérrez an
electoral majority in 2002. They argued for a broad multi-class front
including sections of the capitalist class to "open the doors for the
construction of a New Fatherland". Initially the MDP joined the
government but later left when it dramatically shifted to the right.
These policies proved disastrous for the working class, poor peasants
and other exploited by capitalism.

They failed to prepare the working class and masses for the
pro-capitalist role of Gutiérrez or for the tasks necessary to take the
running of society into their own hands and what a continuation of
capitalism would mean in terms of vicious attacks against the social
conditions of the masses.

The relentless attacks against the working people of Ecuador meant that
the ’adjustment programme’ of Gutiérrez was greeted by a wave of strikes
throughout his presidency. By the October 2004 municipal elections his
support was slashed to a mere 5% of the votes cast. Increasingly
isolated and cocooned in his presidential palace, Gutiérrez attempted to
shore up his crumbling regime and formed a parliamentary alliance with
the traditional capitalist parties - the Renewal Institutional Action
Party (PRIAN), supporter of former President Gustavo Naboa, and the
Ecuadorian Rodolsian Party (PRE) backer of former President Abdala
Bucaram, ’El loco’ who was in exile in Panama exile.

This pact was carried through at the expense of the influence of the
social democratic Democratic Left (DI) and the right-wing capitalist
Social Christian Party (PSC).

Inevitably the PRIAN and PRE demanded their pound of flesh for
supporting Gutiérrez. They insisted on getting a bigger slice of the pie
in the running of the state. The PRE demanded a change in the
composition of the Court of Supreme Justice (CSJ). In December 2004 27
out of 31 judges were replaced. The new President of the CSJ was a close
personal friend of Bucaram.

The reasoning behind this agreement was clear by March 31st 2005 when
planned trials against former Presidents Bucaram and Noboa were
cancelled. The door was opened for them to return to the country from
exile to stand in Presidential elections scheduled for 2006.

Mass protests

Mass protests had been developing against the government throughout the
year. In January and February 100,000 people took to the streets in
Quito and Guayaquil - the largest cities. However, reflecting the
absence of a clear independent political alternative of the working
class and peasants, these protests were each headed by the local Mayors
- in Quito a member of DI and in Guayaquil of the PSC.

The leadership of these capitalist parties were attempting to rest on
the mass movement in the hope of extracting concessions from the
government for themselves. They also hoped to limit the protests. Both
Mayors demanded that Gutiérrez ’change’ - not that he be removed!
However, as we shall see, events were propelled forward and radicalised
by the attempted return to Ecuador of deposed former Presidents, Bucaram
and Naboa.

In the Quito Citizens’ Assembly, which was established during the
movement as a broad alternative parliament, the Mayor of Quito, Paco
Moncay of the DI presided with other representatives from other
provinces. All of them were from the DI and Pachakutik - the political
wing of the indigenous movement, CONAIE. Pachakútik had initially joined
Gutiérrez’s government when it came to power but soon left it.

In this movement there was an urgent need for the workers and peasants
to form their own independent organisations of struggle. These needed to
be based on the idea of mass assemblies in all work places, local
communities, and colleges to elect delegates to a committee. All
delegates need to be subject to immediate recall by the assemblies which
elect them. Such committees need to link together on a district, city
wide, provincial and national basis in order to organise the struggle
and take it forward.

Such bodies could form the basis of a government of workers’ and
peasants which could then begin to take the necessary step not only to
take power from the political representatives of capitalism but could
introduce the basis of a revolutionary socialist programme to overthrow
capitalism itself. The nationalisation of all the major industrial and
financial companies, expropriation of all multinational companies and a
programme of land reform would allow the basis to be laid for
introducing an emergency reconstruction programme of the whole economy.

A workers’ and peasants’ government would face the threat of
counter-revolution from US imperialism and the capitalist class of Latin
America. It would not be possible to build socialism in any one country
especially a small country like Ecuador. A workers’ and peasants’
government would need to take the necessary steps to win the support of
the masses of Latin America and appeal to the working class of the USA
for support with the perspective of spreading the revolution throughout
the continent and establishing a democratic socialist federation of the
Americas. The social convulsions taking place in Venezuela, Bolivia,
Brazil and other countries would ensure such a programme and perspective
would win massive support.

However, the absence of mass support for the idea of socialism and a
mass revolutionary socialist party that could channel the revolutionary
energy and determination of the masses means that events may develop in
a more protracted and complicated way.

Bucaram returned to Ecuador at the beginning of April which was a
crucial factor in events exploding further. Having overthrown him in
1997 and driven him out of the country, the masses were in no mood to
accept his return. His attempted come back was too much for them to
swallow. Demonstrations demanding "Lucio out" began in Quito on April
5th. These began to gather momentum and a general strike was called in
the province of Pichincha, including Quito on April 11th.

“They must all go”

The ’leaders’ of the DI and PSC were terrified at the turn events were
now taking and desperately began to try to find a way out. The Mayor of
Quito said the strike would be called off if the Congress could find a
solution. For them the issue was simply a question of their parties
securing more representation in Supreme Court. For the masses all of the
hatred and bitterness they felt towards the existing politicians,
political parties and what they represented was expressed in the demand
not only for the removal of the President but as the masses chanted:
“They all must go" (Que se vayan todos).

However, the hatred of the masses towards the existing rulers exists
alongside a vacuum in which there is no consciously organised
alternative. The masses have not yet embraced the idea of the need for
socialism as an alternative to capitalism. This means there is an
impasse in the situation. At the same time the continued economic
devastation has and will drive the masses back into struggle again and
again.

This impasse can continue for a relatively lengthy period of time. A
striking feature of the situation in Ecuador, (and also Venezuela), has
been the inability, at this stage, of right-wing reaction to be able to
strike a successful blow against the mass movement in the form of a
military coup.

However, it would be a mistake to conclude from this that this situation
will continue indefinitely. If capitalism is not overthrown through the
establishment of a workers’ and peasants government with a revolutionary
socialist programme that includes a perspectives of spreading the
revolution to the rest of central and Latin America then reaction will
eventually strike a successful blow.

This can take the form of a military coup or alternatively of a creeping
counter revolution. The latter can develop if the masses eventually
become ground down and demoralised by the absence of any way out of the
crisis.

This process unfolded in Nicaragua at the end of the 1980’s. The failure
of the Sandinista leadership to take the revolution forward and
overthrow capitalism led to an impasse. Eventually the masses, after
nearly a decade of crisis, an imperialist backed ’civil war’, and seeing
no way forward became exhausted, demoralised and worn down which opened
the way to a ’democratic’ counter revolution and the victory of Chamora
in Presidential elections in 1990.

Social fragmentation

The danger of this process unfolding in the form of social fragmentation
or disintegration is a real threat especially in some of the most
economically devastated countries of Latin America. It was not an
accident that the most recent events followed a visit by the IMF
representative, Rodrigo Rato in March. IMF proposals included the
sacking of 5,000 civil servants, cuts in social services, removal of
state subsidies and the opening up of the energy and oil industries to
private capital. This was followed by Lucio Gutiérrez announcing the
’State Economic Rationalisation Law’ which included proposals to
privatise social security, electrical companies, and more flexibility in
the labour market and selling off profitable oil fields to the
multi-nationals.

By April 13th public transport, education and all council work places
were paralysed by strike action. Protests spread to the rest of the
country including about 50 cities and larger towns. Quito’s Radio Luna
issued an appeal for people to take to the streets and tens of thousands
marched on the Supreme Court buildings demanding Gutiérrez’s resignation.

Gutiérrez, arrogant and isolated, having received the backing of US
military high command in the region felt confident enough to order the
movement to be repressed and declared a state of emergency and dissolved
the CSJ. Small semi-fascist groups organised in squads called "Zero
Corruption" tried to provoke clashes as a pretext for a military coup.
However, again the state machine appears to have split and the army was
not deployed to enforce the state of emergency. Thousands came out onto
the streets and defied the state of emergency.

An emergency session of congress was convened for Sunday April 17 with
the objective of endorsing the suspension of the CSJ. The regime and
ruling class became increasingly desperate to regain control of the
situation. They unceremoniously dumped Gutiérrez who had become a
liability. The vice President, Palacio, criticised the state of
emergency. The US ambassador to Ecuador urged "prudence and negotiation".

In a last desperate attempt to regain control of the situation Gutiérrez
urged Bucaram to leave the country again. However, the situation had
gone beyond such palliative measures. The ruling class and congress
abandoned Gutiérrez and voted 65 to nil to remove him. He eventually
fled the country - hotly pursued by demonstrators who chased him to the
airport in an attempt to prevent him escaping.

Like Bucaram before him, he fled the country seeking exile this time not
in Panama but in Brazil. Lula gave him asylum, reflecting once again how
Lula is acting to defend capitalism nationally and in the whole of Latin
America where Brazil is the strongest power and playing an increasingly
assertive role.

With Palacio now installed in the Presidency, the immediate social
upheaval seems to have abated. The new government has been compelled to
announce some measures to try and stabilise the situation. The new
Economy Minister, Rafael Correa, has declared the dollarisation
programme the greatest "economic policy error adopted". He has also
proposed the abolition of the oil revenue stabilisation fund which will
release more oil revenue for state and social spending.

However, these palliative measures will not resolve the social and
economic crisis which continues. The relentless attacks on the masses
are certain to provoke further struggles and upheavals in the next
months and years. Combined with the unfolding struggles throughout Latin
America, through these experiences the idea of socialism as an
alternative to capitalism can begin to develop and win widespread
support. This process is now developing in Venezuela, Brazil and other
countries. The struggle to win support for revolutionary socialist ideas
and the need to build a mass revolutionary socialist party in Ecuador
and Latin America is becoming an increasingly urgent necessity.

Chronology of main events.

1995 - Short war between Ecuador and Peru.

August 1996 - Abdala Bucaram, ’El loco’ elected to power on a
populist programme.